I now believe there is a possibility that we make a new trend high before starting the next downtrend in this bear market. I will close a small portion of my short position (25% or so) on a break below 890 with the intent to reenter above 940.
Notice on the above chart that the NYSE A/D divergences I posted a few days ago have been negated. This makes me believe that we could see one more high with lower stock participation to complete the rally. This would post the final A/D divergence and then lead to the next bear market decline.